

Painters and decorators from Sri Lanka and floor layers from Thailand and more about the upheaval the Israeli refurbishments industry is currently undergoing.
By: Raz Ohana, Manager of the refurbishment contractors department
The refurbishments industry has been undergoing an upheaval in the last year but contrary to other industries which are still in a process of recovery, things are taking a turn for the good in this sector.
In order to discuss this in detail we met with Natali Shimon-Weinstein, CEO of the Refurbishment Contractors Association, who is visiting Sri Lanka at the moment, where she told us about remarkable efforts which are already taking shape to find a solution to the manpower crisis in the construction industry in Israel, by bringing new foreign workers to Israel. Could we really be seeing painters and decorators from Sri Lanka and floor layers from Thailand in Israel?
Itzik Simon Insurance Agency is following developments closely, especially owing to the expansion of our involvement in the sector due to increasing demand and the comprehensive insurance solutions we can offer to contractors and manpower companies who bring foreign workers to Israel.

Foreign workers are replacing workers from the Palestinian Authority
The construction industry in Israel is facing challenging times due to the manpower shortages as a result of the sharp decline in workers from the Palestinian Authority due to restrictions imposed after October 7th 2023, before which they were the logistical backbone of the industry. As a result of the manpower crisis, the Refurbishment Contractors Association has been making endless efforts to persuade government ministries to increase foreign worker quotas and create long term solutions for the problem, which would otherwise only get worse.
Until recently, explains Natali Shimon-Weinstein, foreign workers were employed in the construction industry in four main trades – formwork, metal work, plastering and flooring. However, refurbishment works, contrary to general construction works, which often involves complex and precise remodelling works in private houses and other projects, creates a need to recruit manpower with expertise in specific trades and establish an accreditation process.

Shimon-Weinstein tells us that the Refurbishment Contractors Association has decided to take the initiative to create a new process which is tailored to the needs of refurbishment contractors, for the benefit of their private and commercial customers who wish to renovate private houses, shops, offices and more. She points out that the Association is working in three main areas:
Firstly, by adjusting the work hours of foreign workers, from the standard 236 per month in the general construction industry to 182 as is more common in the refurbishments industry (for private and communal projects).
Secondly, by aiming to reduce foreign worker levies. The Association has been lobbying government ministries and public entities, including the Ministry of Housing and Construction, the Ministry of Finance, the Population Authority, the office of the prime minister and other senior officials with the aim of reducing levies, a move which will directly reduce the hourly cost of employing refurbishment contractors from abroad.
Last but not least, introducing a bespoke accreditation process, the first of its kind, for foreign workers in the construction industry. A system of this type is already in place in Sri Lanka. It will be launched in Thailand shortly, and other countries are expected to join in the future.
Three tracks for the refurbishments industry
For the first time in Israel we are launching a bespoke accreditation process for the refurbishments industry, tailored to the diverse professional needs of the industry, and foreign workers who wish to work in Israel can choose any one of the specialist tracks:
Plastering track – With an emphasis on developing the ability to perform interior building works with a high level of precision.
Flooring track – Including making adjustments to existing flooring using special materials, cutting tiles and laying corner tiles.
The general worker track – The central and most important track, enabling workers to specialise in a diverse range of building trades which are currently lacking sufficient manpower.
“The accreditation process for the general track is not designed for menial workers” emphasises Shimon-Weinstein, “In the refurbishments industry, we need versatile personnel who can handle a diverse range of tasks. The accreditation process in the general worker track including testing the expertise of the worker in performing finishing works, such as paint repairs, fitting fuse boxes, plasterboard works and more.
Not everyone is accepted and the screening process is quite stringent. It is far from being a merely formal procedure, and in fact only 40% of the candidates are accepted, with the declared objective of bringing the best people to Israel. To date, some 700 foreign workers have come to Israel as part of the program, out of around 2,000 who applied”.

“Game changer”
Despite impressive achievements, the Refurbishment Contractors Association expects to encounter ups and downs along the way. Firstly, there will be an adaptation period to familiarise the foreign workers with various aspects of the Israel refurbishments industry including regulations, local materials and tools, the climate, work culture and more.
“The new workers cannot immediately replace experienced workers from the Palestinian Authority, who have been working for local contractors for more than 20 years, but with a proper adjustment period and support on our part, it could be a real game changer”, says Shimon-Weinstein.
According to the Refurbishment Contractors Association, at the present time there is a shortage of 20,000 workers, of which 15,000 were from the Palestinian Authority, and as part of efforts to close the gap, a quota of 5,000 workers has been approved as part of a pilot in cooperation with Sri Lanka. At the same time, discussions are underway to extend the project to other countries.
The shortage is still significant but if the quotas are increased, the new accreditation process succeeds and investments are made in training, the future of the refurbishments industry and the entire construction industry looks bright. The key to success is proper planning and making ongoing efforts to locate suitable workers to provide a solution for the Israel market.


Insurance for foreign workers in the refurbishments industry
As a leading construction insurance agency, we also handle insurance for foreign workers in the refurbishments industry. This cover needs to comprehensively address the needs of foreign workers. According to data we have collated, at least 10% of refurbishment contractors report at least one work accident every year. 59% of the accidents at refurbishment and construction sites involves injuries from tools or materials, 35% from falling from heights and 6% from electrocution.
At Itzik Simon Insurance Agency, we offer a diverse range of solutions for the needs of refurbishment contractors, either by way of a flexible annual “open” policy covering all projects based on the estimated annual scope of works, or by way of a single project policy, providing specific cover for an individual project.
When arranging insurance cover for foreign workers, it is important to consider the needs of the contractor as well as of the foreign worker, such as medical insurance for foreign workers, which is tailored to the needs of foreign workers and takes into consideration various factors such as language, cultural background, their home country and socio-economic status, all with the aim of ensuring accessible, effective and fast medical treatment.
The best policies provide arrangements to see a doctor who can communicate in a language the worker understands, wherever possible, and are extended to cover laboratory tests, hospitalisation, surgery, medication and other medical services. Many refurbishment contractors who have been used to employing Israeli or Palestinian workers are not fully aware of all such intricacies and would be well advised to consult with a specialist insurance agent to ensure they obtain the optimal cover.